Posted by JohnBoy on March 10, 2002 at 17:01:36:
Where will you get the $6k + $3k cash to make up the back payments and money for the sellers? You would need to get at least $9k down from your buyer to break even and then wait for your potential profit over time.
The most I ever offer a seller in a case this this is up to $2500 for moving expenses. As it stands they really have no equity to deal with. If the list with an agent their equity will be gone to pay the realtor’s commission and their payments will continue to fall behind until the house sells and additional interest, late charges and attorney fees will stack onto what they already owe!
Plus, you will have to cover any payments until you find a buyer. Even if you make the deal suject to you finding a buyer first, if it takes you 2 months to find someone that will be another 2 months of payments in arrears unless these sellers will make them while you try to find someone!
You could see about getting the lender to put the arrears onto the back end of the loan or work out a separate payment plan to catch up on them. That would save you from having to come up with the full $6k to bring the loan current now and allow you room to make something off your buyer’s down payment.
But offering the sellers $147,600 on a $160k property is no deal! That’s paying retail! The only way I pay retail is if I don’t have to pay anything out of pocket or use all of my buyer’s down payment money to make the deal work!
I would tell them $2500 once you find a buyer and that’s it! They would need to decide soon because that offer drops by whatever amount their payments are each month while they sit around and decide! So if they want the full $2500 then they need to decide within a day or so, or they will have to take less. The clock is ticketing and those payments only continue to fall further behind while they sit around “thinking” about it! They need to, “sh*t or get off the pot!” Time is of the essence!!!
Otherwise you’ll just buy it from the bank for a lot less than that after they take it back and the sellers will get ZIP and a ruin their credit over it in the end!